EBRD Distinguishes 100 Million USD to Support Georgian SMEs

The European Bank for Reconstruction and Development (EBRD) is extending a loan of 100 million USD (220 million GEL) to the Bank of Georgia to support the development of local small and medium-sized enterprises (SMEs). It includes the Deep and Comprehensive Free Trade Area (DCFTA) SME fund worth up to 50 million USD, SME finance of up to 40 million USD and the Women in Business SME fund of up to 10 million USD.

“The DCFTA opens up an important new market to Georgian companies. The EBRD is ready to help local SMEs become more competitive on regional markets with the provision of long-term local currency financing. The EBRD is committed to supporting businesses and companies in Georgia through investment, know-how and policy dialogue with the government to help the economy make the most of new market opportunities,” said Bruno Balvanera, EBRD Director for the Caucasus, Moldova and Belarus.

The facility will help local SMEs invest in improvements to product quality and modernize their services to meet EU standards. The EU will provide interested SMEs with investment incentives of up to 15 per cent as well as technical assistance in the form of advisory services from international consultants and the EBRD’s Advice for Small Businesses.

In addition, the financing package will also increase access to credit in local currency and specifically support businesses that are managed or owned by female entrepreneurs for better access to finance and advice.

The EBRD is the largest institutional investor in Georgia and has already invested 2.6 billion euros in the country.

30 May 2016 19:12